During the Money Expo 2006 on Thursday and Friday, mortgage loans that carry no interest for the first few months will be available, possibly for the last time, as interest rates in the market continue edging higher.

All banks are gearing up to woo homebuyers with special interest rates despite rising lending and deposit rates.

Pricing will therefore still be the core strategy at this year's exposition, which will be held at Queen Sirikit National Convention Centre.

Bank of Ayudhya and TMB Bank will offer loans with no interest in the short term.

TMB Bank said it would offer housing loans with no interest during the first two months and after that charge a higher rate, which it would not disclose as of this writing.

Kasikornbank is offering mortgage loans at the special fixed rate of 1.49 per cent per annum for the first three months; thereafter there are three options for its floating-rate loans that borrowers can choose from.

These are the minimum lending rate (MLR) minus 2.5 percentage points for the 4th to 12th month, MLR minus 1.5 percentage points for the 4th to 24th month and MLR minus 1 percentage point for the 4th to 36th month.

Once the special rate package ends, the bank will charge customers the MLR minus 25 basis points throughout the loan period.

The bank's MLR currently stands at 7.5 per cent.

Those who purchase homes from projects run by the bank's partners in the residential development business will get a rate of 1.29 per cent for the first three months.

After that they can choose from the same floating rate offers as the other borrowers.

Bangkok Bank said it would sell more than 1,000 second-hand property assets including homes, condominiums, commercial buildings and land at the expo and offer at least a two-year fixed mortgage rate for the customers who are willing to buy them.

Siam Commercial Bank will give customers applying for home loans at the exposition a 100-day grace period during which they won't have to make any instalment payments.

Customers who walk into the GE Money Retail Bank's booth, the new player in banking sector, and apply for a mortgage loan of Bt2 million or more will receive a Bt1,000 gift voucher from HomePro.

The bank's mortgage loans for those who want to buy a new home, loans for people who want to refinance their existing home loans and a home equity loan for people who would like to take out loans using their residences as collateral.

The bank will also throw in a few gifts, a chance to win a lucky draw grand prize and special services to attract retail borrowers at the money fair.

But home loans are not the only way visitors to the expo can go into debt. Banks and finance companies have plenty of ways to get them to borrow more.

For personal loans, TMB has personal loans that carry no interest for the first five months of the loan.

The first 500 people who apply for this loan and are approved will also receive an insurance policy gratis.

GE Money promises to its Quikcash loans within 30 minutes and it will take one hour to approve applications for its Car4Cash auto refinancing loans.

Customers who have their loans approved will receive several gifts and promotions from the bank such as a 5-per-cent cash-back promotion, travel bags, vacuum cleaners, pens and calculator sets, and gif tvouchers from Siam Paragon.

For credit card products, cardholders who apply for loan from Kasikornbank can choose any from two free gifts: a picnic set called "Ice Cool" or a breakfast maker, once their application is approved.

Siam Commercial Bank will offer the "SCB Dee Jang" promotion that gives its new cardholders an introductory zero-interest rate on any purchases made using their credit card at the expo. The bank will also introduce a new version of debit cards illustrated with "Superman Returns" film images.

Besides special rates and several gifts provided at the expo, visitors to the money fair can win prizes from many banks' lucky draws.

The range of great gifts and prizes include a gold necklace, home-theatre system, digital camera, mobile phones, DVD player, MP3 players and airline tickets to various destinations.

People who apply for loans from Krungthai Card can win a Mazda BT-50, a California-inspired pickup worth Bt900,000.

Somruedi Banchongduang

The Nation